Duncan Chiu, a member of the Legislative Council of the Hong Kong Particular Administrative Area (HKSAR), revealed that the Hong Kong Parliament is at present conducting a second spherical of consultations concerning stablecoin laws, with plans to unveil these regulatory circumstances by mid-2024.

His comment was made in the course of the 2023 Shanghai Blockchain Worldwide Week on September 19 and reported by an area media outlet. Hong Kong is undoubtedly one of the crucial dynamic crypto hubs in Asia and the world.

Chiu additionally shared his suggestions to the Hong Kong Chief Govt, which included exploring tokenization, digital Hong Kong {dollars}, and stablecoins, with the aim of creating Hong Kong as a digital asset hub.

Hong Kong’s Stablecoin Regulatory Roadmap

Along with Hong Kong’s regulatory agenda for stablecoins, the occasion members mentioned the dynamic world of Web3 and its implications for blockchain and cryptocurrencies.

Jiannong Cao, a Professor at Hong Kong Polytechnic College, illuminated the improvements flourishing inside decentralized finance (DeFi), GameFi, and SocialFi, all grounded in Web3.0 ideas. He additionally highlighted the emergence of Decentralized Autonomous Organizations (DAOs).

Ming Zeng, former Chief Technique Officer of Alibaba Group, concluded the summit with insights into Web3’s future. He highlighted the function of AGI (Synthetic Basic Intelligence) in lowering the brink and price of creation, thus forming a creator economic system.

They emphasised the significance of infrastructure, functions, and the expansion of your entire ecosystem in Web3’s growth. He additionally famous that AI/crypto native providers would emerge sooner or later, bringing new customers and driving the event of the ecosystem.

The summit offered a platform for trade leaders to debate the evolving panorama of Web3, blockchain, and cryptocurrency. The insights shared in the course of the summit underscored the importance of those applied sciences in shaping the way forward for finance, governance, and innovation in Hong Kong.

Earlier this 12 months, the Hong Kong Financial Authority (HKMA) declared that algorithmic stablecoins wouldn’t be accepted. As an alternative, the HKMA has launched stringent tips that require all stablecoin issuers to keep up a steady and related backing of their stablecoin worth with the underlying reserve asset.

Crucially, this new licensing requirement will likely be made obligatory for entities conducting operations inside Hong Kong’s jurisdiction. Moreover, it should prolong to firms actively advertising and marketing their stablecoin merchandise to the Hong Kong public.

Issues concerning algorithmic stablecoins have mounted because the collapse of TerraUSD, an algorithmic stablecoin of the Terra ecosystem. The Luna-Terra saga worn out billions of {dollars} in worth and induced widespread panic amongst crypto traders. Many crypto exchanges and different companies had been compelled to put off staff or cut back prices to outlive.

Hong Kong Takes the Lead in Crypto Adoption

Hong Kong is actively positioning itself as a serious participant within the cryptocurrency realm. In July, the Hong Kong Particular Administrative Area authorities established a process power to advance Web3.0 know-how.

In August, HashKey, the primary cryptocurrency trade to obtain regulatory approval from the Securities and Futures Fee (SFC), launched its providers to retail traders.

Deputy Minister for Monetary Providers and Treasury Joseph Chan Ho-lim emphasised the federal government’s proactive strategy to fintech innovation and investor safety, highlighting Hong Kong’s strides in bridging the hole between cryptocurrency property and conventional monetary markets.

In the identical month, Swiss crypto financial institution Seba obtained approval in precept from the SFC to ascertain a presence in Hong Kong. The AIP serves because the preliminary stage for Seba Hong Kong to safe a full license, permitting it to have interaction in transactions involving cryptocurrency-related merchandise, digital property, and conventional securities.

These developments spotlight Hong Kong’s rising recognition of digital property as a significant factor of the longer term monetary panorama. With HashKey and Seba contributing to the transformation of Hong Kong right into a dynamic cryptocurrency hub, the area is poised to stay on the forefront of worldwide cryptocurrency enlargement.

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